![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZyQqUhVNx3lnl3Ly6LXhar-PMuzPIzWBFavN32B2K3f1Mu49KdM9XZ3Lv-5QudsjrPYt_uEsfRDWFNTF8e9EoiIKhZ-TS2RmLnAk0lOl1lHFIlxuozcTxKdcdziaT63vERqNXZcHNqb0/s400/ewj_summary.gif)
Mike Bristow from V-trader Group gave me this color.
The ETF has traded over 20,000 options on total daily average option volume of just 5,466. The largest trade, accounting for 20,000 contracts was a Jan'11 9/10 strangle sale @ $0.56. The Stats Tab and Day's biggest trades snapshots are included (click either image to enlarge).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwN_tataI1pov1IqrtVNkWQ3rCDO2uw14RczT8diQsxGA9oASrJfbTm0_bjb5oiB1ogpgoSpN7qz66HWLEtOiJLvdJVegzHx9_IPtPBUCbuP9rIyuUAbL9FsLIEQDQ6FT2fr4HesT10Nk/s400/ewj_stats.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRLIpjXi05-YjJUX6aXtqI0t4zKr9MjqQQ_Nbcafn8KLWQybUZFHer8OSn_jJGbw0oK7iD-c4UlTpJnZBdGZXqQj28S7K2GFoWqM5wbGk44-SEGJuMo9FBbEWpwny36Xge_uHGnFzjLRQ/s400/ewj_trades.gif)
The Options Tab (click to enlarge) illustrates that the calls and puts have huge OI. I see the puts with long OI and the calls with short. It looks like a Jan'11 9/10 risky went up on 8-11-2010 25,000x (buy puts/sell calls).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGuViAVNX_z1ezCPh3QH2Gl7_8SgOakX7rUZeO75SS9F4ROLSDiicIvHv0YJIFRJSnUCFK8GjEPfhsMLKIheP8fPPbRz2L4hjdEiQ9-6UJVVvaiv8Qnsj1jNzh5Otd3iB7vp19x0n00NE/s400/ewj_options.gif)
The Skew Tab snap (click to enlarge) illustrates the vols by strike by month.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg28b_lBlKbS_-GphN-q3gM_-W237zK8y0AnsiMuUku6PxSYYgbuDDA7B1cPDgUBCE3_rHZepk_f7eRCYs8pZkD5_6T_OEfeQRUB6gQZ9q27n8LshTxsHo6eiWfJ16W2Igx6GZQHNIjDGM/s400/ewj_skew_8-30-2010.gif)
Not a lot going on there; but the Charts Tab does have a lot.
Finally, the Charts Tab (6 months) is below (click to enlarge). The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue). The yellow shaded area at the very bottom is the IV30™ vs. the HV20™ vol difference.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilYSMOiyKKLg6dIQhbwMx2aCp2lX3mKCbh5FQ_hDGqlTMDsy45zdiE1EQ4_4QxXUHpRbJb1PFE9zJqjHfA9c34_wndLupgrauYwBFgKtdJ-F30d5s9bbzbsjQRQyhPUecaI_sVT_Vt1Ik/s400/ewj_charts.gif)
Note how the IV30™ trades well above the HV20™ consistently in this ETF. i.e. the vol is usually a sale. For a brief moment a back spread was a winner, then back to vol sales. Recently the divergence has opened up pretty wide to 24 vs 18. The strangle sale today sells ~21 vol on average.
Japan is interesting, in that it plays a big role in the overall global economy. Lower vol there means higher markets (usually). Check out this blog from 5-18-2010:The European Crisis Explained and Currency Option Trading.
Hmm... Bullish? Not really clear. If Japan rallies relative to the rest of the globe, does that imply a strengthening or weakening currency? If it's a weakening currency, ok... But if it's strengthening, that may imply bad news.
This is trade analysis, not a recommendation.
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